Q1 2009 Earning Report of Starhill Global Real

First Quarter 2009 Financial Results 27 A il 200927 April 2009

AgendaAgenda

Financial Highlights

P tf li P f U d tPortfolio Performance Update– Singapore– Tokyo– Chengdu

Growth StrategiesGrowth Strategies– Asset Enhancements– Business Strategy

27 April 2009 Starhill Global REIT 2

Key highlightsKey highlights

1Q 2009 4%

1Q 2009 DPU of 1.87 cents achieved, 6.3% higher than 1Q 2008

1Q 2009: Income to be distributed up 7.4%

Resilient retail master lease structure at Ngee Ann City to be bolstered by expected surge in shopper traffic when Wisma Atria basement linkway to MRT station reopens

Weighted average effective interest rate remains low at 2.95% per annum after refinancing of S$35 million of Revolving Credit Facility now due March 2010


1Q 2009 financial highlights1Q 2009 financial highlights

f 1 8 1Q 2008 6 3%

Period: 1 Jan – 31 Mar 2009 1Q 2009 1Q 2008 % Change

DPU of 1.87 cents exceeded 1Q 2008 by 6.3%

Gross Revenue $34.3 mil $30.4 mil 12.8%

Net Property Income $27.1 mil $23.1 mil 17.2%

Income Available for Distribution $19.1 mil $17.0 mil 12.2%

Income to be Distributed $18.0 mil (1) $16.8 mil 7.4%

DPU 1.87 cents (2) 1.76 cents 6.3%

Note: 1. The income to be distributed is based on 100% of taxable income for the current period. Approximately S$1.1 million of income available for distribution

for the first quarter ended 31 March 2009, comprising mainly overseas income, has been retained to satisfy certain legal reserve requirements and forprudency.


2. The computation of DPU is based on number of units entitled to distributions comprising: (a) number of units in issue as at 31 Mar 2009 of 960,803,854units and (b) units issuable to the Manager as partial satisfaction of management fee (base fee) earned for 1Q 2009 of 2,972,852 units.

DPU performanceDPU performance

Actual DPU % increase over previous quarter

DPU growth

1Q 2009 (1 Jan – 31 Mar 2009)

FY 2008 (1 Jan – 31 Dec 2008)

4Q 2008 (1 Oct – 31 Dec 2008)

1.87 cents

7.17 cents

1.85 cents

1.1%

3.9%

3Q 2008 (1 Jul – 30 Sep 2008)

2Q 2008 (1 Apr – 30 Jun 2008)

1Q 2008 (1 Jan – 31 Mar 2008)

FY2007 (1 Jan 31 Dec 2007)

1.78 cents

1.78 cents

1.76 cents

6 19 t

0.0%

1.1%

4.8%

FY2007 (1 Jan – 31 Dec 2007)

4Q 2007 (1 Oct – 31 Dec 2007)

3Q 2007 (1 Jul – 30 Sep 2007)

2Q 2007 (1 Apr – 30 Jun 2007)

6.19 cents

1.68 cents

1.54 cents

1 50 cents

9.1%

2.7%

2 0%


2Q 2007 (1 Apr 30 Jun 2007)

1Q 2007 (1 Jan – 31 Mar 2007)

1.50 cents

1.47 cents

2.0%

n.m.

1Q 2009 financial results1Q 2009 financial results

1Q 2009 gross revenue exceeded$’000 1Q09 1Q08 % Change

1Q 2009 gross revenue exceeded 1Q 2008 by 12.8% due primarily to higher rates achieved from renewals and new leases in Singapore, the rent review of the

Gross Revenue 34,325 30,418 12.8%

Less: Property Expenses

Depreciation

(7,217)

(55)

(6,901)

(428)

4.6%

(87.1%) g pmaster lease in Ngee Ann City, as well as higher revenue from the Chengdu property

Net Property Income 27,053 23,089 17.2%

Less: Fair Value Adjustment (1)

Borrowing Costs

(179)

(5,893)

(46)

(4,705)

289.1%

25.2%

Management Fees

Other Trust Expenses

(2,671)

( 834)

(2,822)

(1,020)

(5.4%)

(18.2%)

Net Income Before Tax 17,476 14,496 20.6%

Add Non Ta Ded ctibles (2) 1 603 2 515 (36 3%)Add: Non-Tax Deductibles (2) 1,603 2,515 (36.3%)

Income Available for Distribution 19,079 17,011 12.2%

Income to be Distributed 18,023 16,788 7.4%

Notes: 1. Being accretion of tenancy deposit stated at amortised

cost in accordance with Financial Reporting Standard 39. This financial adjustment has no impact on the DPU

2. Includes adding back of management fees payable in units, finance costs, depreciation, sinking fund

i i d t t f

27 April 2009 Macquarie MEAG Prime REIT 6

DPU 1.87 cents 1.76 cents 6.3%provisions and trustee fees

Starhill Global REIT

1Q 2009 financial results1Q 2009 financial results

$’000 1Q 2009 1Q 2008 % Change

Wisma Atria

$’000 1Q 2009 1Q 2008 % Change

Wisma Atria

Revenue Net Property Income

Retail (1)

Office (1) (2)

11,455

2,575

11,552

2,107

(0.8%)

22.2%

Ngee Ann City

Retail (1) (2) 9,940 8,362 18.9%

Retail

Office

9,277

2,004

8,564

1,536

8.3%

30.5%

Ngee Ann City

Retail 8,399 6,580 27.6%

Office (1) (2) 3,553 2,772 28.2%

Japan portfolio (3)

Chengdu (4)

2,646

4,156

2,253

3,372

17.4%

23.3%

Office 2,575 2,018 27.6%

Japan portfolio (3)

Chengdu (4)

2,221

2,577

2,012

2,379

10.4%

8.3%

Total 34,325 30,418 12.8% Total 27,053 23,089 17.2%

Notes: 1. Net of government property tax rebates to be passed on to tenants2 Renewal of leases at higher market rates and rent reviews

27 April 2009 Macquarie MEAG Prime REIT 7

2. Renewal of leases at higher market rates and rent reviews3. Mainly due to strengthening of Yen4. Higher sales at Chengdu property and strengthening of RMB


Trading yieldTrading yield

Attractive trading yield compared to other investment instrumentsAttractive trading yield compared to other investment instruments

16.53

16

18 16.66%

12.16

8

10

12

14 12.16%

16.11%14.16%

2.50 2.03 1.42

0 552

4

6

8

1.42%2.50%

0.55%2.03%

Notes: 1 B d St hill Gl b l REIT’ l i i f $0 455 it t 31 M 2009 d t l li d di t ib ti f 1Q 2009

(4)(3)(2)(1) (5)

(4)

0.55

-Starhill Global REIT FY2009

yield

Average S-Reit yield

CPF Ordinary Acount

10-Year Spore Govt Bond

5-Year Spore Govt Bond

Bank Fixed Deposit Rate (12

Month)

0.55%

27 April 2009 8

1. Based on Starhill Global REIT’s closing price of $0.455 per unit as at 31 Mar 2009 and actual annualised distribution for 1Q 20092. As at 31 Mar 2009 (Source: Bloomberg)3. Based on interest paid on Central Provident Fund (CPF) ordinary account in Mar 2009 (Source: CPF website)4. As at Mar 2009 (Source: Singapore Government Securities website)5. As at 9 Apr 2009 (Source: DBS website)

Unit price performanceUnit price performance

Liquidity statistics

Last 3 months average 1.2 mil60,000

70,000

1.20

1.40

daily trading volume (units)

Estimated free float 74.0%

Market cap (31 Mar 09) $437 mil130,000

40,000

50,000

0.60

0.80

1.00 Trading Volume ('0ni

t Pric

e (S

GD

)

0

10,000

20,000

0 00

0.20

0.40

000s)

U

Source: Bloomberg

00.00

Nov

-05

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep

-06

Nov

-06

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep

-07

Nov

-07

Jan-

08

Mar

-08

May

-08

Jul-0

8

Sep

-08

Nov

-08

Jan-

09

Mar

-09

Volume ('000s) Unit Price 200-day mvng avg


Note: 1. By reference to Starhill Global REIT’s closing price of $0.455 as at 31 Mar 2009

Distribution timetableDistribution timetable

Distribution Period 1 January to 31 March 2009

Distribution Amount 1.87 cents per unit

Notice of Books Closure Date 27 April 2009

Distribution Timetable

Last Day of Trading on “Cum” Basis 30 April 2009, 5.00 pm

Ex-Date 4 May 2009, 9.00 am

Books Closure Date 6 May 2009, 5.00 pm

Distribution Payment Date 29 May 2009


Debt profileDebt profile

As at 31 Mar 2009 $’000

Term loan (CMBS equivalent) 380,000

Term loan (Secured) 190,000

Revolving Credit Facilities 46,000

Japan Bond 47,920

Chinese Loan 6,219

Total Debt 670,139

Fixed Rate Debt (up to Sept 2010) 1 89.4%

Gearing Ratio 2 31.1%

Interest Cover 4.9x

Weighted Average Effective Interest Rate 1 2.95% p.a.

Starhill Global REIT corporate rating3 Baa2

Notes:


1. Includes interest rate derivatives and Japanese loan2. Based on deposited property as defined in the Trust Deed3. Reaffirmed by Moody’s Investors Service in Oct 2008

Debt profileDebt profile

f S 2010No significant debt maturing until September 2010

Weighted Average Effective Interest %

700 S$ million

Debt maturity profile

Rate is 2.95% p.a.

89.4% of borrowings is fixed (including derivatives) until

500

600 617

September 2010

S$35m of RCF refinanced. Final maturity extended to March 2010200

300

400

‐ ‐ ‐ ‐ ‐-

100

2009 2010 2011 2012 2013 2014

491 1 11


Term loan (CMBS equivalent) RCF (secured)

Term loan (secured) RCF (unsecured)

Japan bond Chinese loan

Balance sheetBalance sheet

As at 31 Mar 2009 $’000

Non Current Assets 2,114,367

Current Assets 40,840

NAV statistics

NAV Per Unit (as at 31 Mar 2009) (1) $1.43

Adjusted NAV Per Unit (1) $1 41Total Assets 2,155,207

Current Liabilities (109,602)

Non Current Liabilities (665,877)

Adjusted NAV Per Unit (1)

(net of distribution)

$1.41

Last traded price as at 31 Mar 09 $0.455

Total Liabilities (775,479)

Net Assets 1,379,728

Unitholders’ Funds 1,379,728

Unit Price Premium/(Discount) To:NAV Per Unit

Adjusted NAV Per Unit

(68.2%)

(67.7%)

Units (’000) 963,777

Notes:1. The number of units used for computation of NAV per unit is 963,776,706. This comprises: (a) number of units in issue as at 31 Mar 2009 of 960,803,854 units;


p p , , p ( ) , , ;and (b) units to be issued to the Manager as partial satisfaction of management fee (base fee) earned for 1Q 2009 of 2,972,852 units.

AgendaAgenda

Financial HighlightsFinancial Highlights

Portfolio Performance UpdatePortfolio Performance Update– Singapore– Tokyo– Chengdu

Growth StrategiesGrowth Strategies– Asset Enhancements– Business Strategy

27 April 2009

14


Portfolio summary

Portfolio

Portfolio summary

f f S CDiversified portfolio comprising Singapore, Japanese and Chinese assets

Gross Revenue by Retail and Office(1Q 09)

Gross Revenue by Property(1Q 09)

Gross Revenue by Country(1Q 09)

Office18% NAC

39%

Renhe Spring Zong Bei Property

12%

Japan

China12%

WA41%

Singapore

Japan8%

Retail82%

Japanese Properties

8%

Singapore80%

27 April 2009 15Starhill Global REIT

Portfolio lease expiry

Portfolio

Portfolio lease expiry

f 2 64 2 3 ( )Weighted average lease term of 2.64 and 2.53 years (by NLA and gross rent respectively)

50%

Portfolio Lease Expiry (as at 31 March 2009)1

Office Retail

Japan Totalsq ft WA NAC WA NAC

2009 39,902 28,761 24,585 7,804 2,614 103,667

42.5%

37.5%

30%

40%

50%

By NLA By Gross Rent

2010 21,797 62,054 37,494 2,928 4,010 128,284

2011 16,254 48,597 59,563 17,201 2,782 144,397

Beyond 2011 2,680 - 2,583 225,969 47,185 278,417

15.8%

19.6%22.1%

14.9%

23.6% 24.0%

10%

20%

Notes:1.Portfolio lease expiry profile does not include Chengdu Property which

operates as a department store with many short-term concessionaire l i 3 12 th

Total 80,633 139,413 124,225 253,901 56,591 654,764 0%

FY2009 FY2010 FY2011 Beyond 20112Beyond 2011

27 April 2009 16

leases running 3-12 months2.Toshin contributes to 34.5% and 29.9% of portfolio lease expiry by

NLA and Gross Rent respectively


Portfolio lease expiry profile by year

Portfolio

Portfolio lease expiry profile by year

1 6 f 1891 2011 f 62 % f176 out of 1891 leases expire by 2011, accounting for 62.5% of gross rental income

Year Office Leases Retail Leases Gross Rental Income per month1

No. of leases

Weighted average rent psf

No. of leases

Weighted average rent psf

Office S$’000

Retail S$’000

% of Total 2

2009 24 7.90 29 27.40 540 959 14.9%

2010 24 9.60 45 35.40 806 1,573 23.6%

2011 16 10.50 38 21.80 681 1,736 24.0%Total 64 9.30 112 26.80 2,077 4,268 62.5%

27 April 2009 17

1. Excludes leases in Chengdu property as it operates as a department store comprising many concessionaries with short leases running 3-12 months

2. As a percentage of total gross rental income for the month of March 2009


Portfolio top 10 tenants

Portfolio

Portfolio top 10 tenants

T 10 t t t ib t d 44 1% f th tf li tTop 10 tenants contributed 44.1% of the portfolio gross rent

Tenant Name Property Leased Area (sq ft) Lease Expiry % of Portfolio

Gross Rent 1% of Portfolio

NLA

Toshin Development Co Ltd NAC 225,969 Jun 2013 26.3% 29.9%

Ebi F t S 2012

Future Revolution K.K. 2Ebisu Fort

NakameguroHarajyuku Secondo

Roppongi Terzo

39,505

Sep 2012,Dec 2015,Dec 2015Jan 2016

5.1% 5.2%

Bread Talk Group WA 27,104 Sep 09, Oct 09, Sep 2011 2.4% 3.6%

Nike Singapore Pte Ltd WA 8,288 Nov 2011 2.2% 1.1%

Zegna Trading (Shanghai) Co. Ltd3 Renhe Spring Zongbei 1,550 Mar 2009 1.5% 0.2%

Aspial-Lee Hwa (S) Pte Ltd WA 3,778 May 09, Aug 2010, Sep 2011, Oct 2011 1.4% 0.5%

Mar 2010 Jun 2010RSH (Singapore) Pte Ltd WA 4,061 Mar 2010, Jun 2010, Oct 2010 1.4% 0.5%

Wing Tai Retail Pte Ltd WA 4,908 May 2010, Jun 2010, Oct 2010, Nov 2010 1.3% 0.7%

FJ Benjamin Lifestyle Pte Ltd WA 7,847 Nov 2011 1.2% 1.0%Fashion Retail Pte Ltd WA 3,832 Sep 2009 1.2% 0.5%

27 April 2009 18

Notes: 1. For the month of March 20092. Future Revolution KK is the fixed rent master tenant for these four properties3. Zegna Trading (Shanghai) Co. Ltd operates as a concessionaire at the Renhe Spring Zongbei Property and pays a percentage of GTO.

Renewal negotiations are in progressStarhill Global REIT

Rental reversions:

Portfolio

Rental reversions:Office rent contribution expected to be steady in 2009

The average passing rent of leases expiring in 2009 accounting for 68 664 sq ft

Incremental contributions expected from renewal of office units in 2009

11 00 12 100,000

Portfolio Office Lease Expiry and Average Gross Passing RentsS$ psf pmSq ft

expiring in 2009 accounting for 68,664 sq ft of office NLA is still below market rents

Positive rental reversion of 111.5% for

7.90

9.60 10.50

11.00

6

8

10

50 000

60,000

70,000

80,000

90,000

office lease renewal in 1Q 2009 despite challenging market conditions

68 664 83 852 64 851 2 680

2

4

6

10,000

20,000

30,000

40,000

50,000

68,664 83,852 64,851 2,680 --

2009 2010 2011 Beyond 2011

Expiring Office Leases (by NLA)

Gross passing rents of expiring leases (S$ psf pm)

27 April 2009 19

Note: Average monthly gross rent rounded to nearest ten cents


Retail Passing Rents

Portfolio

Retail Passing Rents

Average Passing Rents of Wisma Atria and Ngee Ann City Vs. Prime Orchard Road Rents

Wisma Atria’s average passing rents are above market average

Ngee Ann City’s average retail rents are lower given the master lease with Toshin that accounts for 89% of retail NLA at Ngee Ann City

28.16 27.91 28.11 29.24 30.63

33.0034.50

36.40 36.53 36.53

30

35

40

S$ psf pm

Footnotes:1. 2005 average rents computed from September - December 20052. CBRE’s quoted figures are for prime Orchard Road space which is

d fi d “ i lt ” h it f 500 1 000 ft l l ith10 85 10.86 10.96 12.24 13.51 15

20

25

defined as “specialty” shop units of 500-1,000 sq ft on level with heaviest traffic

10.85

-

5

10

2005₁ 2006 2007 2008 2009


Wisma Atria Retail Ngee Ann City Retail CBRE

Occupancy costs

Portfolio

Occupancy costs

Average retail occupancy costsAverage retail occupancy costs

The higher occupancy cost at Wisma Atria is attributed to the higher proportion of fashion tenants given the centre’s positioning as a female

Average retail occupancy costs

30%30% tenants given the centre s positioning as a female-

centric mall

Renhe Spring Zongbei Property operates as a hi h d d t t t ith i t ti l l

25%

16% 17%20%

high-end department store with international luxury labels such as Prada, Hugo Boss, Chopard, Montblanc and Vertu which typically enjoy lower occupancy costs

0%

10%

2008 Year-to-Date 2009

Notes:

1. Year-to-date 2009 occupancy costs for Wisma Atria and Renhe Spring Zongbei is for the period Jan-Mar 2009

2. Year-to-date 2009 occupancy costs for Wisma Atria has increased primarily due to

Wisma Atria Renhe Spring Zongbei


lower tenants’ sales

3. Average retail occupancy costs for Ngee Ann City and the Japanese properties are not available due to master lessee arrangements

Wisma Atria Property Overview

Wisma Atria

Wisma Atria Property - Overview

Weighted average lease term of 1.5 years (by NLA) Rent Structure of Retail Leases (by NLA)

66%

81%

60%

80%

100%Dec 2005 Mar 09

g g y ( y )– Retail: 1.76 years; Office: 1.05 yearsHigh committed occupancy (95.1% by NLA) – Retail: 98.6%; Office: 90.5% Increasing proportion of retail leases structured as base rent plus % GTO

Rent Structure of Retail Leases (by NLA)

33%

19%

0%

20%

40%

Higher of Base Rent or % GTO Base Rent plus % GTO

p– Base rent plus % GTO from 33% (Dec 05) to 81%

(Mar 09)– Higher of base rent or % GTO from 66% (Dec 05) to

19% (Mar 09)

Committed Occupancy RatesLease Expiry Schedule (by NLA) as at 31 Mar 2009

47.9%49.5%50%

60% Retail Office

95% 95.3% 95.6%98.6%

86.0% 84 7%90.5%

95%

100%

Retail Office

19.8%

30.2%27.0%

20.2%20%

30%

40%

50% 86.0% 84.7%

83.2%

65%

70%

75%

80%

85%

90%

95%


2.1% 3.3%

0%

10%

FY2009 FY2010 FY2011 Beyond 201150%

55%

60%

30 Jun 08 30 Sep 08 31‐Dec‐08 31‐Mar‐09

Wisma Atria Property Overview

Wisma Atria

Wisma Atria Property - Overview

Wi At i R t il E i i LWisma Atria Retail Expiring Leases and their Average Passing Rents

Wisma Atria Office Expiring Leases and their Average Passing Rents

WA Retail Lease Expiry & Average Gross Rent

S$ psf pmS ft

WA Office Lease Expiry and Average Gross Passing Rents

S$ psf pmSq ft

39.10

35

40

45

35,000

40,000

45,000

50,000

S$ psf pmSq ft

12.00

12.80

11.00

10

12

14

35,000

40,000

45,000

50,000 S$ psf pm

33.30

23.70 24.30

20

25

30

15,000

20,000

25,000

30,000

8.70

6

8

10

10 000

15,000

20,000

25,000

30,000

24,585 37,494 59,563 2,58310

15

0

5,000

10,000

2009 2010 2011 Beyond 2011

Expiring retail leases (by NLA)

39,902 21,797 16,254

2,680

2

4

-

5,000

10,000

2009 2010 2011 Beyond 2011




Gross passing rents of expiring leases (S$ psf pm)Gross passing rents of expiring leases (S$ psf pm)

Wisma Atria Property Traffic and centre sales

Wisma Atria

Wisma Atria Property – Traffic and centre sales

Quality of shopper traffic and sales to improve with reopening of basement MRT linkwayQuality of shopper traffic and sales to improve with reopening of basement MRT linkway expected in 2Q 2009

2 5

Wisma Atria Traffic Count at Primary Entrances

Year 2007 Year 2008 Year 2009Million

Wisma Atria Property Retail Sales TurnoverS$ Million

1.5

2.0

2.5 Year 2007 Year 2008 Year 2009

20

22

24

26

2007 Sales Turnover

Million

0.5

1.0

12

14

16

182008 Sales Turnover

2009 Sales Turnover

0.0

Overall footfall to Wisma Atria is expected to increase from 15.8 million p.a. (2008 full year traffic) to close to pre-MRT linkway

10

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 Sales TurnOver 2008 Sales TurnOver 2009 Sales TurnOver


p p ( y ) p yclosure levels of about 25 million p.a. when the new basement and level 2 linkways to Orchard MRT open in June 2009

A knock-on effect on centre sales is expected

Wisma Atria Property Diversified tenant base

Wisma Atria

Wisma Atria Property - Diversified tenant base

WA Office Trade Mix by % NLAWA Retail Trade Mix by % NLA WA Office Trade Mix – by % NLA(as at 31 Mar 2009)

WA Retail Trade Mix – by % NLA(as at 31 Mar 2009)

Aerospace10.3%Trading

8.9%

Travel/Leisure1.0%

Jewellery & Watches

Services3.7%

Shoes & Accessories

8.4%

Consultancy / Services13.2%Government

related3.0%

Investments3.0%

Real Estate & Property Services

8.2%Fashion48.7%

General Trade2.1%

Watches6.6%

Jewellery & Watches

4.9%

Medical9.5%

Others10.0%

Petroleum Related27.9%

Health & Beauty1.7%

F&B28.7%

27 April 2009 25

Ngee Ann City Property Overview

Ngee Ann City

Ngee Ann City Property - Overview

Lease Expiry Schedule (by NLA) as at 31 Mar 2009 Weighted average lease term of 3.0 years (by NLA)– Retail: 3.89 years; Office 1.32 years

Close to full committed occupancy (99.3% by NLA) – Retail: 99.6%; Office 98.8%

89.0%

44 5%60%70%80%90%

100% Retail Office

Increasing proportion of Level 5 retail leases structured as base rent plus % GTO from 0% (Dec 05) to 83% (Mar 09) and step-up rents from 0% (Dec 05) to 72% (Mar 09)

3.1% 1.2%6.8%

20.6%

44.5%34.9%

0.0%0%

10%20%30%40%50%

Committed Occupancy Rates

FY2009 FY2010 FY2011 Beyond 2011

99.6% 99.6% 99.6% 99.6%98.2% 98.2% 98.8% 98.8%100%

Retail Office

70%

80%

90%


50%

60%

30 Jun 08 30 Sep 08 31-Dec-08 31-Mar-09

Ngee Ann City Property Overview

Ngee Ann City

Ngee Ann City Property - Overview

N A Cit R t il E i i LNgee Ann City Retail Expiring Leases and their Passing Average Rents

Ngee Ann City Office Expiring Leases and their Passing Average Rents

S ftSq f S$ psf

16.60 16.60

15

16

17

200,000

250,000

S$ psfSq ft

12

14

40,000

50,000

60,000 ft S$ psf

14.3013.10

12

13

14

15

100,000

150,000

6.70

8.809.70

6

8

10

20,000

30,000

,

7,804 2,928 17,201 225,96910

11

0

50,000

2009 2010 2011 Beyond 2011

28,761 62,054 48,597 2

4

-

10,000

2009 2010 2011







Ngee Ann City Diversified tenant base

Ngee Ann City

Ngee Ann City - Diversified tenant base

NAC Trade mix by % NLA NAC Office Trade Mix by % NLANAC Trade mix – by % NLA(as at 31 Mar 2009)

NAC Office Trade Mix – by % NLA(as at 31 Mar 2009)

Aerospace 3.6% Banking and

Financial Services

7.4%Bea t /

Real Estate & Property Services

6 9%

Travel/Leisure 5.4%

Beauty & Wellness

Services1.9%

General Trade0.4%

Beauty/ Health 4.5%

Consultancy / Services

Others 16.6%

Petroleum Related

2.2%

6.9%Wellness8.8%

28.2%

Fashion Retail 14.2%

Jewellery & Watches 11.0%

Toshin89.0%


Japan Properties Overview

Japan Properties

Japan Properties - Overview

Weighted average lease term by NLA is 4.5 yearsWeighted average lease term by NLA is 4.5 years

Full occupancy except for the Daikanyama property

Four of the seven properties (69% by NLA) have fixed rent master leases expiring between 2012 and 2015 –provides stability of cashflow over an extended period

Occupancy ratesLease Structure (by NLA)

Pass through100% 100% 100% 100% 100% 100%

100%

Committed occupancy rates as at 31 March 2009

Medium Term Master Lease

34%

Pass-through Leases

31% 88%

70%75%80%85%90%95%

100%

Long term master leases expire late 2015

M di t t l i i S 2012

Long Term Master Lease

35% 50%55%60%65%

Hol

on L

araj

yuku

ec

ondo

Rop

pong

i Te

rzo

Rop

pong

i P

rimo

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uro

an-y

ama

bisu

For

t

27 April 2009

Medium term master lease expires in Sep 2012

Pass-through leases typically have 3 year terms

29Starhill Global REIT

Ha S R R

Nak

a-

Dai

ka Eb

Japan Properties Overview

Japan Properties

Japan Properties - Overview

Pro active management of Japanese assets

The issue of Future Revolution’s former parent undergoing civil rehabilitation has been lifted as 100% of the company has been divested to a non-

Pro-active management of Japanese assets

Area occupied by Future Revolution and 3rd party end tenants

100% of the company has been divested to a non-related party, Hexagon Capital Partners

Efforts are ongoing to reduce the amount of lettable area occupied directly by Future Revolution

Future Revolution

29%

area occupied directly by Future Revolution

Savills Japan K.K. has been appointed as the asset manager of Ebisu Fort, replacing Future Revolution. Savills will also assume the role of asset manager

3rd party end‐tenants

71%

Savills will also assume the role of asset manager for the rest of the Japan portfolio on 1 June 2009

The Manager is also working to replace the property manager for the Japan portfolio with the

Future Revolution is the master tenant and property manager of Starhill Global REIT’s seven Japanese properties


property manager for the Japan portfolio, with the aim to further drive performance at these assets

Renhe Spring Zongbei Overview

Renhe Spring Zongbei

Q C C

Renhe Spring Zongbei - Overview

Full occupancy as at end March 2009

Renhe Spring Zongbei property is still showing resilience to weak global economic conditions

1Q 2009 sales was 14 6% higher than 1Q 2008

Quality high-growth asset in Chengdu, China

1Q 2009 sales was 14.6% higher than 1Q 2008

Chinese government announced a RMB 4 trillion economic stimulus package to be spent over 2009 and 2010

25,000

Sales (RMB'000)including VAT

Renhe Spring Zongbei Weekly Sales Performance

15,000

20,000

0

5,000

10,000

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Wk 5

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Wk 15

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Wk 25

Wk 27

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Wk 51

2007 2008 2009

AgendaAgenda

Financial Highlights

Portfolio Performance Update– Singapore– Tokyo

Growth StrategiesAsset Enhancements– Asset Enhancements

– Business Strategy


Ngee Ann City:Positioning strengthened by new tenants and upgraded storesPositioning strengthened by new tenants and upgraded stores

Louis Vuitton expanding into a duplex unit by 2Q 2009 adding to the list of new andLouis Vuitton expanding into a duplex unit by 2Q 2009 adding to the list of new and upgraded stores by Toshin


Ngee Ann City:Successful reconfiguration and branding of Level 5Successful reconfiguration and branding of Level 5

The Fifth - a level above shopping

The National Library space on Level 5 has

been reconfiguredbeen reconfigured and rebranded to

complement the Ngee Ann City shopping

experience


Wisma Atria:Continuing tenant remix to enhance positioningContinuing tenant remix to enhance positioning

New stores in 2008


Wisma Atria:Integration with ION Orchard on trackIntegration with ION Orchard on track

Seamless connectivity with Orchard MRT station and ION Orchard from June 2009

New level 2 connection

New escalators from Orchard MRT

ION ORCHARDWISMA ATRIA

MRT

New escalators will lead directly from O h d MRT t ti i th b t tOrchard MRT station in the basement to ground level directly opposite the new entrance at Wisma Atria’s west side

Wisma Atria’s level 2 traffic expected to increase significantly

27 April 2009

ORCHARD ROAD

to increase significantly


Wisma Atria:Re opening of basement MRT linkway access in progressRe-opening of basement MRT linkway access in-progress

Seamless connectivity with Orchard MRT station and ION Orchard from June 2009

Re-opening of basement connection

MRTMRT Commuter traffic flow

The re-opening of Wisma Atria’s basement linkway to O h d MRT t ti ill lt i f


Orchard MRT station will result in a resurgence of shopper traffic, making the basement floor once again one of the busiest shopping corridors in Orchard Road

Wisma Atria:Creating lettable retail area at Basement and Level 1Creating lettable retail area at Basement and Level 1

R l f N E l t t l k l bl l tt bl h b t MRT li kRemoval of New Escalators to unlock valuable lettable area when basement MRT linkway re-opens

Removal of escalators between basement and Level 1 near GAP after re-

Basement floor

Level 1 near GAP after reopening of the MRT linkway

Escalators will be redundant after re-

i f MRT li k

To Orchard MRT Station

opening of MRT linkway allowing creation of additional lettable area

Works to commence after the Great Singapore Sale

Financial Impact of Asset Enhancement (Estimates only)Annual Rental Income 566

and complete by October 2009

Annual Expenses (assume 20% expense margin) 113

Incremental Annual NPI 453Capital value of initiative (assume 5.15% cap rate) 8,800

Less Capital Expenditure (740)

27 April 2009 Starhill Global REIT

Increase in capital value (net of investment cost) 8,060

Return on investment pa (%) 61%

Growth contributorsGrowth contributors

Rental Reversions

Growth contributors for these two years

Ngee Ann City – Toshin rent increased by 19.75% from 8 Jun 2008 for 3 yrs

Wisma Atria – Re-opening of MRT linkway – expected in June 2009

Asset Enhancements

Ngee Ann City – Level 5 reconfiguration – from Jun 2008

Wisma Atria – New lettable area at B1 and L1 – from Oct 2009

Wisma Atria – Ground level integration with ION Orchard

Wisma Atria – Rent increase from new Nike lease – from Dec 2008

27 April 2009

2009 2010


Resilient in current economic climateResilient in current economic climate

Starhill Global REIT is well positioned to ride challenging economic conditions

Premium assets / resilient leases– Toshin master lease rent in Ngee Ann City (29.9% of portfolio NLA) increased 19.75% in June 2008; lease does not allow

downward revision; next rent review in 2011; lease expiry in 2013, with option to renew for a further 12 yearsp y p y– Occupancy levels for office and retail space remain healthy– Even distribution of lease expiry of Singapore portfolio mitigates any potential downward revision in rents:

• Remaining Singapore office leases expiring in 2009 (68,664 sq ft) represent 28.6 % of total office NLA• Remaining Singapore retail leases expiring in 2009 (32,389 sq ft) represent only 8.5% of total Singapore retail

NLA– Seamless connectivity between Ngee Ann City, Wisma Atria, the upcoming neighbouring mall and Orchard MRT station

will boost shopper traffic and form most compelling retail block on Orchard Road– Robust sales performance from department store in Chengdu, China (NPI up 8.3% over 1Q 2008)

Healthy debt profileHealthy debt profile – Low gearing of 31.1%– No significant refinancing due until September 2010– Average weighted average interest rate of 2.95% p.a.– 89.4% of borrowings fixed (including derivatives) until September 2010


Synergies with YTL CorpSynergies with YTL Corp

YTL Corp as sponsor offers synergiesYTL Corp as sponsor offers synergies

Extensive track record and expertise in developing and managing retail real estate in Asia

Source of potential pipeline acquisition opportunities

Potential synergy with Starhill REIT in Malaysia

Established relationships with international luxury retail principals including the watch fashion and jewellery industriesthe watch, fashion and jewellery industries

Wide network and relationships with banks


Business strategyBusiness strategy

Defensive strategies to see Starhill Global REIT through global economic downturnDefensive strategies to see Starhill Global REIT through global economic downturn

Maintain strong financial position and low gearing

Manage tenancies to ensure sustainability of distributions

Strategies to build a global REIT platform through Starhill brand

Attractive and accretive acquisition opportunities arising from current economic downturnac e a d acc e e acqu s o oppo u es a s g o cu e eco o c do u

Focus for acquisitions continues to be retail and commercial properties

Build on the Starhill brand by sourcing for potential retail management and commercial property fund management contracts


References used in this presentationReferences used in this presentation

1Q, 2Q, 3Q, 4Q means the periods between 1 January to 31 March; 1 April to 30 June; 1 July to 30 September; and 1 October to 31 December respectively

CMBS means Commercial Mortgage Backed Securities

DPU means distribution per unit

FY means financial year for the period from 1 January to 31 December

GTO means gross turnover

IPO means initial public offering (Starhill Global REIT was listed on the SGX-ST on 20 September 2005)

NLA means net lettable area

NPI means net property income

pm means per month

psf means per square foot

WA and NAC mean the Wisma Atria Property (74.23% of the total share value of Wisma Atria) and the Ngee Ann City Property (27.23% of the total share value of Ngee Ann City respectively).

All values are expressed in Singapore currency unless otherwise stated


Di l iDisclaimer

This presentation has been prepared by YTL Pacific Star REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release has been made by the Manager and posted on SGXNET on 27 April 2009 (the “Announcements”). This presentation is qualified in its entirety by, and should be read in conjunction with the Announcement posted on SGXNET. Terms not defined in this document adopt the same meanings in the Announcements.

The information contained in this presentation has been compiled from sources believed to be reliable. Whilst every effort has been made to ensure the accuracy of this presentation, no warranty is given or implied. This presentation has been prepared without taking into account the personal objectives, financial situation or needs of any particular party. It is for information only and does not contain investment advice or constitute an invitation or offer to acquire, purchase or subscribe for Starhill Global REIT units (“Units”). Potential investors should consult their own financial and/or other professional advisers.

This document may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions.

Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits and training costs), property expenses and governmental and public policy changes. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s view of future events.

The past performance of Starhill Global REIT is not necessarily indicative of the future performance of Starhill Global REIT. The value of Units and the income derived from them may fall as well as rise. The Units are not obligations of deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem their Units while the Units are listed. It is intended that unitholders of Starhill Global REIT may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.


27 April 2009Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : [email protected]

Q1 2009 Earning Report of Starhill Global Real

Economy & Finance

Transcript of Q1 2009 Earning Report of Starhill Global Real